The Shooting Star is a single-candle bearish reversal pattern. It forms at the top of an uptrend — price moves up sharply during the session, but sellers push it back down near the open by close. The long upper wick represents rejected buying pressure — a warning that the uptrend may be ending.
What a Shooting Star Looks Like
Long upper wick = buyers tried and failed | Body at bottom = sellers won the session
Shooting Star Identification Rules
- Upper wick is at least 2× the body length (ideally 3×)
- Body is in the lower third of the candle's range
- Little or no lower wick
- Must appear after an uptrend for bearish reversal significance
- Red (bearish) body is stronger signal than green body
Trading the Shooting Star
Shooting Star Short Strategy:
1. Identify Shooting Star after an uptrend or at key resistance
2. Wait for next candle to be bearish (close below Shooting Star body)
3. Entry: Short on confirmation candle close (or open of next candle)
4. Stop Loss: Above the high of the Shooting Star's wick
5. Target: Previous support or 1:2 risk-reward minimum
1. Identify Shooting Star after an uptrend or at key resistance
2. Wait for next candle to be bearish (close below Shooting Star body)
3. Entry: Short on confirmation candle close (or open of next candle)
4. Stop Loss: Above the high of the Shooting Star's wick
5. Target: Previous support or 1:2 risk-reward minimum
Shooting Star at NSE Resistance Levels
- At 52-week highs or all-time highs
- At the upper Bollinger Band on daily chart
- At Fibonacci extension levels (127.2%, 161.8%)
- At prior major distribution zones
- When RSI is above 70 simultaneously — highest probability
Never short an NSE stock purely on a Shooting Star without confirmation. A stock can have a Shooting Star and then continue higher on the next day — always wait for the confirmation candle to close bearishly before entering.
